Home Depot says core shopper remains ‘resilient’ despite higher gas prices

Home Depot reportedly announced on Tuesday that its core homeowner customer base remains flexible in the face of higher gas prices and declining consumer sentiments.

Finance chief Richard McPhail told CNBC in an interview: “The homeowner in a relevant sense is perhaps more protected financially than other customer cohorts so we continue to see engagement.” 

“They continue to tell us that they are going to defer their spend on larger projects,” he said. “That’s consistent with what they’ve told us the last few years.

It has been observed that consumer confidence still gets affected in the face of rising geopolitical tensions and a broken housing market.

According to LSEG, the company is expecting that 2026 sales can grow between 2.5% and 4.4% compared to expectations of approximately 4%.

It is pertinent to note that Home Depot’s beat on the top and bottom lines, following the Wall Street estimations that had fallen in recent months. 

Earlier this year, there was optimism that Home Depot could see a temporary break as mortgage rates started to dip, but those hopes faded after the conflict in the Middle East began and interest rates backed up.

The Home Depot is closely monitoring certain aspects to achieve success over more pro shoppers like contractors and roofers. It is crucial to note that the retailer acquired SRS Distribution in 2024 to tap into the roofing and pool professionals. 

On the other hand, Home Depot finalized a deal to expand into a business strategy worth around $100 billion HVAC market.

“All of the things we’re doing to build out our pro capabilities — and through the acquisitions we’ve made over the past several years — is to help us gain more share in the $700 billion pro market,” said McPhail. “We have a right to win that $700 billion, but we just don’t quite have the ability to win yet.”